Nifty Pharma Outlook

Nifty Pharma:- Nifty Pharma has formed Inverted Head and Shoulder Pattern on the daily chart. This pattern is formed after a long down trend. The formation of this Inverted Head and Shoulder on the Nifty Pharma indicating that the pharma stocks may move higher in short term. The breakout of the neckline has been already done with the higher volumes. Indicators Analysis * Bullish Crossover on MACD and Signal line above the 0 Level signals the strength in the momentum of the Index Price. * RSI at 66 Indicating Strength in the price momentum * Stochastic is in bullish momentum. * Index price has moved above the 100 EMA with good volumes and big bullish candle. The bullish crossover of 20 EMA and 100 EMA may provide the strength to the index and may move higher. All these analysis are indicating that the index may move higher in near term.

But on the other side If we plot the 10 EMA (8301) on Monthly Chart, 50 EMA(8317) on Weekly Chart and 200 EMA(8241) on Daily Chart we will find that all this EMA giving the index strong resistance around same level. A rang of the 8240 to 8320 might be the strong resistance on the chart. Pharma Stocks Like Lupin and Stride Pharma also has Inverted Head and Shoulder Pattern on daily chart but need to focus on Nifty Pharma.